Economies of Scale and Boxing the Customer

From a tactical point of view The use of cloud technology results into various percentages of
success thus giving the customer a wide variety of choices over their preferences. The economies
of scale that accompany cloud computing depend heavily on the size of the company. A major
company is likely to enjoy the economies of scale in comparison to small SMEs which will not
record changes in the financial statement. Consequently, any changes in the production process
will equally reflect on the profitability of the organization unlike a smaller enterprise which might
record little or nothing at all in terms of the marginal cost changes. Using the cloud is a sure way
of boxing the customer in through the services available at the company’s disposal. Cloud
computing is a tool that could change how a customer views a certain business and the type of
relationship they pursue. The platform created by cloud computing could be an avenue for
pushing the customer towards an organization’s goods or services.